Homeownership grants aim to reduce disparities

Date: Friday, December 20, 2024

Partnerships will expand affordable housing in eight cities

Graphic rendering shows two rows of three-story townhomes surrounded by trees.The Met Council has awarded a total of $3 million in Livable Communities grants to cities and development authorities to help create 46 new affordable homeownership opportunities in eight cities in the Twin Cities metro region.

Part of the Livable Communities program since 2022, the grants are designed to reduce the disparities in homeownership between white households and Black, Indigenous, and people of color households.

“Homeownership has been the primary wealth-building tool for families in the U.S. for decades, providing families with long-term financial stability through home equity, tax benefits, and appreciation in property values,” said Charlie Zelle, Met Council Chair. “But practices such as redlining, segregation, and discriminatory lending have caused communities of color, especially Black and Indigenous households, to be denied the opportunity to own homes.”

The grant program seeks to address the disparities and create geographic choice across the region. Households earning 80% of area median income or less, depending on the project, are eligible to purchase the homes.

Experts from the Met Council’s Livable Communities Advisory Committee scored 11 project applications. Because the total requests of more than $5.4 million exceeded the available funding, only the three highest-scoring applicants received full funding and seven received partial funding before funds were exhausted.
 

Many projects use community land trusts to maintain affordability

Following are brief descriptions of the awarded projects.

Bloomington Housing and Redevelopment Authority. Build two single-family homes with accessory dwelling units on land owned by Homes Within Reach to ensure and preserve affordability. These are expected to be the first accessory dwelling units permitted in the city under a new zoning ordinance. The project will target first-time homebuyers and multi-generational households living on 45% to 65% area median income.

Carver County Community Development Agency. Project will build one four-bedroom single-family home affordable to households living on 80% area median income, on a vacant infill lot in Watertown owned by the Carver County Community Land Trust.

Eden Prairie. As part of a planned project with six homes, the grant will be used to identify, purchase, rehabilitate, and bring into the Eden Prairie & Homes Within Reach partnership one single-family home, townhome, or condo dwelling for sale. Land will be held in the Homes Within Reach community land trust.

Maplewood. The city will partner with Twin Cities Habitat for Humanity to build seven single-family homes in one location. Three of the homes will be slab-on-grade for ease of access for people with disabilities. Targeted affordability of the homes is for households living on 30% to 80% area median income.

Minnetonka. The city will partner with Twin Cities Habitat for Humanity and the Homes Within Reach to build 10 “Zero Energy Ready” twin-home units at Mills Church. Targeted affordability of the homes is households living on 30% to 80% area median income.

Minnetonka. The city will partner with the Homes Within Reach to acquire, rehabilitate, and sell nine homes in the suburban Hennepin County area. Targeted affordability of the homes is for households living on 45% to 65% area median income.

Roseville. As part of a planned four-home project, the city will partner with Twin Cities Habitat for Humanity to create three affordable homes either through new construction or acquiring and rehabilitating existing houses. Targeted affordability of the homes is for households living on 50% to 60% area median income.

Scott County Community Development Agency. The agency will build two two-story homes with two-stall garages on community land trust land in Shakopee.

Saint Paul. As part of six-home project, the city will build four new three-story townhomes with tuck-under garages in partnership with the Rondo Community Land Trust. Targeted affordability of the homes is for households living on 60% to 80% area median income and for first-time homebuyers. The project design includes a central greenspace, toddler playground, and room for gardens.

Saint Paul Port Authority. As part of a 19-home project with the Rondo Community Land Trust, 7 new affordable townhomes that meet Zero Energy Ready standards will be built. Targeted affordability of the homes is for households living on 60% to 80% area median income.

More about the LCA Affordable Homeownership Program
 

Posted In: Housing

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